Insurance Carrier Loss Control – Another Premium Audit?
Loss Control efforts by insurance carriers sound like such a good idea.
We have had two clients recently (one in California and one in Kansas) where the insurance carrier sent out what was really another auditor that was called loss control. According to the rules, insurance carriers are only supposed to audit employers one time per year, after the expiration of a policy.
Your insurance policy will have all the rules on whether or not you have to allow a loss control representative to do an audit of your operations. This person is not usually seen as a loss prevention representative.
However, there are rules that prevent the auditor from doing certain things to increase the premium for the expired policy. That is where a person that is supposedly there for a safety inspection is actually looking for ways to charge more Workers Comp premium.
One cannot forget and should always remember the 120 day rule for this type of premium audit.
However, your company should not forego these risk audits as they are often very helpful in controlling risks specific to your company.
I will cover the rules that I just mentioned in the next post.
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